Verdict – Short-term neutral to bullish.
DCE iron ore September recovered the loss from previous trading day, following the rebound of all commodities, after a clearly oversold sentiment priced-in the market over last week. If a breakthrough on 695.0, iron ore potentially maintain the fast rebounding. Otherwise, iron ore potentially enter a narrowing consolidation area. The level 638.5 became a mid-run strong support, because the two day-low both reached this level.
The first support is 638.5. The first resistance is 660.5.
